PARKWAY UTILITY DISTRICT MINUTES OF BOARD REGULAR MEETING
JUNE 9, 2021
THE STATE OF TEXAS §
COUNTY OF HARRIS §
PARKWAY UTILITY DISTRICT §
The Board of Directors (the “Board”) of Parkway Utility District (the “District”) convened in a regular session, at 6:15 p.m. on June 9, 2021, via videoconference and teleconference pursuant to Section 551.125, Texas Gov’t Code as modified by the temporary suspension of certain provisions thereof pursuant to guidelines issued by the Texas Attorney General and approved by the Governor for use during the COVID-19 statewide disaster. A roll call was taken of the persons present:
Brenda McNeil, President
Alphonso (“Al”) Rettig, Vice President
Jennifer Balderas, Secretary
Ron Everhart, Assistant Secretary
Gloria Woods, Director
All members of the Board for Parkway Utility District (“PUD”) were present, thus constituting a quorum. Also attending all or parts of the meeting were; Ms. Diane Bailey of McLennan & Associates, L.P. (“Bookkeeper” or “McLennan”), bookkeeper for the District; Ms. Delia Yanez of Assessments of the Southwest (“Tax Assessor-Collector”), tax assessor and collector for the District; Ms. Kaci Schlachter and Mr. Jeffery Bishop, of Jones|Carter (“JC”), engineers for the District; Mr. Gary Syzek of Systems Project Management, General Manager for the District; Ms. Karen Sears of Storm Water Solutions; Mr. Josh Maas with M. Marlon Ivy & Associates (“MMIA”), operators for the District; Mr. Jamal Singleton with Direct Waste Solutions; Captain Ganey of Harris County Precinct 3 Constable’s Office; and Mr. Reginald Wilson and Ms. Meghan Koett of Norton Rose Fulbright US LLP (“NRF”), attorneys for the District; Ms. Psykhe Stuart, Resident of the District; and Mr. Ryan LeMoine of ZuesCon, LLC.
Pursuant to Section 551.054, Texas Gov’t Code, as modified by the temporary suspension of certain provisions thereof, notice of the meeting was posted on the District’s website within the time limits prescribed by law. A certificate of such posting is attached hereto as Exhibit A. The agenda packet was posted on the website as items became available incompliance with the guidelines issued by the Texas Attorney General.
Call to Order. Mr. Wilson called the meeting to order. He noted that the meeting was being held by teleconference in accordance with federal, state and county directives to slow the spread of COVID-19 by avoiding meetings that bring people together. He said the notice of the meeting included a toll-free dial-in number for members of the public to call so they can hear the meeting and address the Board. He noted that the meeting was being recorded and a recording would be available upon public request. Mr. Wilson then set out guidelines for the conduct of the meeting. He asked each speaker to identify themselves before speaking. He then proceeded with the meeting business:
1. Public Comments. Ms. Stuart discussed a flooding issue on Tidwell Road.
2. Minutes of previous meeting(s). Minutes of the regular meeting of May 12, 2021, were previously distributed to the Board and were presented for consideration and approval. Upon motion by Director Rettig, seconded by Director Woods, after full discussion and the question being put to the Board, the Board voted unanimously to approve the minutes.
3. Report from Direct Waste Solutions. Mr. Singleton reviewed the Direct Waste Solutions Report which was previously distributed, a copy is attached as Exhibit “B.”
Mr. Singleton reported that recycling volume totaled 11.37 tons which equates to 2.27 tons per week over five service recycling days in May.
Mr. Singleton reported that the heavy trash notification insert was distributed and it discussed recycling, heavy trash, items included for collection, and holiday schedules.
Director Rettig inquired about tree debris in the area from the recent storm and how to prepare the debris for collection. Mr. Singleton stated items should be tied and bundled.
Ms. Stuart discussed trees growing from properties that block stop signs throughout the District. Mr. Wilson stated if the trees are on personal property, it’s the obligation of the resident or the
HOA for the community to clean up.
Mr. Singleton presented and reviewed a contract renewal and rate adjustment for Direct Waste Solutions, a copy of which can be attached hereto as Exhibit “C.” He stated that the base rate per home has increased to $13.50 and the recycling rate will remain the same. Mr. Wilson stated he recommends approving subject to legal review of the contract. Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the contract and rate increase subject to legal review.
4. Report from General Manager. President McNeil recognized Mr. Syzek, who reviewed and presented the District’s General Manager’s Report, a copy is attached as Exhibit “D.”
Mr. Syzek reported on the Harris County Flood ControlDitch stating the slopes are being reestablished to dig the channel deeper to help the flow of water.
Mr. Syzek reported on the Harris County Toll Road Authority Pond. He stated there is new construction in Tidwell lakes and the toll road owns and maintains the pond.
Mr. Syzek reported there has been illegal dumping of motor oil in Sunrise Pines. He stated the water has been completely flushed and contaminated soil will be removed.
Mr. Syzek reported on the Sierra Ranch Detention Pond stating it is owned and maintained by Harris County.
Ms. Stuart inquired about Stonefield Terrace and how to prevent water from flooding in to Tidwell Street. Mr. Syzek stated that Stonefield Terrance is owned and maintained by the District. He said that all inlets and outlets of the pond are maintained and that the District is aware of silt problems that are scheduled for clean out.
Mr. Syzek reported on the Sesco Cement plant clean-up efforts.He statedHarris County will not allow them to open until everything is cleaned.
Mr. Syzek reported on the Wastewater Treatment Plant monthly meeting.
Mr. Syzek reported there will be a Lower Greens Bayou Workshop meeting on June 22nd. He said this meeting will provide an update on all projects in and around the area.
5. Report by Harris County Precinct Three Constable, including community Crime Watch, and action relating to Security. Captain Ganey reviewed the Security report for the Month of May 2021 which was previously distributed, a copy of which is attached as Exhibit “E.” Captain Ganey reported on various activity throughout the month.
Captain Ganey stated there was an increase in criminal mischief for the month. He also stated there was an increase in traffic stops.
Captain Ganey reported on discharge of firearm calls stating he is setting up grids to isolate where the shots are coming from.
Director Rettig inquired about overall activity in the District compared to others. Captain Ganey stated there is more activity in the surrounding Districts.
6. Tax Assessor and Collector’s Report, status of delinquent tax accounts, and payment of bills. Ms. Yanez presented to and reviewed with the Board the Tax Assessor-Collector’s Report for March, a copy of which is attached as Exhibit “F.” Ms. Yanez reported that 97.26% of the District’s 2020 taxes have been collected as of May 31, 2021.
Ms. Yanez presented 5 checks and 2 wires to the Board for review and approval.
Ms. Yanez reviewed the delinquent tax role.
Ms. Yanez presented and reviewed the delinquent tax attorney report, a copy of which is attached hereto as Exhibit “G.” She stated it is recommended to move three accounts to the uncollectible role. Ms. Yanez also reviewed the losses that have been filed.
Ms. Yanez reported the preliminary number received from HCAD for 2021 is $449,447,810 which does not include protests. She stated in comparison to the 2020 value this is an increase of a little under 38.4 million.
Upon motion by Director Rettig, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the Tax Assessor and Collector’s Report and move the three delinquent accounts to the uncollectible role.
Ms. Yanez stated Ms. Stuart has reached out regarding her delinquent tax statements. Ms. Yanez stated that the 2020 payment from Ms. Stuart was postmarked February 19, 2021 and was due by January 31, 2021. Ms. Yanez stated that delinquent notifications were sent in January that starting February 1, 2021 interest and penalties will occur. Ms. Yanez said Ms. Stuart currently owes $77.40. Extensive discussion ensued.
7. Bookkeeper’s Report, Investment Report, payment of bills, and take any necessary action. Ms. Bailey reviewed the Bookkeeper’s Report and quarterly investment report, copies of which are attached as Exhibit “H.”
Ms. Bailey reported on capital projects fund disbursements.
Ms. Bailey reported that check nos. 11351-11429 were written in prior months and brought back for review.
Ms. Bailey reported check 11438 is to President McNeil for AWBD housing expense.
Ms. Bailey reported check 11449 was for the final billing of the audit.
Ms. Bailey reviewed the schedule of investments through current day.
Ms. Bailey reported that the next debt service payment is September 1, 2021.
Ms. Bailey reviewed the Investment report for May with the Board.
Ms. Bailey reviewed the budget comparison through May. She stated there is a surplus of $770,000.00.
Ms. Bailey reported on the Water surface facilitywith Greenwood and reviewed Parkway Utility District’s portion.
Ms. Bailey reviewed the Joint Water Plant Facilities budget with the Board.
Upon motion by Director Everhart, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the bookkeeper’s report.
8. Operator’s Report from M. Marlon Ivy & Associates. Mr. Maas presented and reviewed with the board the Operator’s Report, a copy of which is attached hereto as Exhibit “K.”
Mr. Maas reported Parkway currently has 2439 active connections.
Mr. Maas reviewed the bill and collections report for April and May with the Board.
Mr. Maas reviewed the production and sales report and stated the District has 94.22% accountability.
Mr. Maas reviewed historical data over a 4 month average.
Mr. Maas stated there were no violations at the wastewater treatment plant.
Mr. Maas reported on the sewer plan and discussed challenges the operating plant experiences under normal conditions. He suggest an increase in sledge hauling for it would be beneficial for operations.
Mr. Maas inquired if the Board would like to proceed with water termination and issuing fees for delinquent accounts. He stated there are currently 13 accounts over $250. Discussion ensued. The Board agreed to proceed with late fees and shut offs.
Upon motion by Director Rettig, seconded by Director Balderas, after a full discussion and the question being put to the Board, the Board voted unanimously to accept the Operator’s Report, to proceed with termination and fees of delinquent accounts.
9. Engineer’s Report, including review of Engineer’s projects, and capital repairs. Mr. Bishop presented to and reviewed with the Board the Engineer’s Report, a copy of which is attached as Exhibit “I.”
Mr. Bishop reported on the Sanitary Sewer Rehabilitation Project stating only one bid was received from Texas Pride Utilities, LLC for $693,107 which was under estimate. Upon motion by Director Balderas, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to award construction bid to Texas Pride Utilities, LLC.
Mr. Bishop reported on the Lift station 2 project stating approval has been received from the City of Houston and that five bids were received with ZuesCon, LLC being the lowest bidder at $1,157,540.97. He said that as a company, ZuesCon, LLC has not completed a project related to
Municipal Utilities Districts but have hired experienced personnel to work on the project. Mr. Bishop stated he does not recommend bid to the second lowest bidder, Gael, Inc. Lastly, Mr. Bishop stated that Sustanite Support Services, LLC presented a bid $200,000.00 over the estimate and they are a very qualified contractor with experience. Extensive discussion ensued. Mr. LeMoine provided clarification on the expected days to complete the project. Upon motion by Director Rettig, seconded by Director Everhart, after a full discussion and the question being put to the Board, the Board voted unanimously to award contract to ZeusCon, LLC.
Mr. Bishop reported on the surface water transfer facility stating bids were received and he recommends awarding bid to R&B Group, Inc. in the amount of $3,312,376.00. He explained that the cost estimate from two years ago was 2.2 million less than current costs due to the pandemic and recent weather storms. President McNeil stated she wats to view an itemized list of costs prior to the pandemic to compare to current costs.
Mr. Bishop reported on the Wastewater Treatment Plan Expansion project stating he received a pay estimate and is recommending payment of the District’s share in the amount of $227,932.20 to CSA Construction. Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to authorize payment to CSA Construction.
Mr. Bishop reported on the wastewater treatment plant outfall depression stating the geotechnical analysis is complete and will discuss findings at the July meeting.
Mr. Bishop reviewed a budget worksheet of the District and joint facility projects.
Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to approve the Engineer’s Report.
10. Report from Storm Water Solutions, and take any necessary action. President McNeil recognized Ms. Sears, who reviewed a report from Storm Water Solutions, a copy of which is attached hereto as Exhibit “J.” Ms. Sears reported on maintenance in the detention ponds.
11. Building Superintendent’s Report. Director Rettig discussed recent requests to use the administration building again. Mr. Wilson stated the Board cannot require people to wear a mask but you can post a sign stating it is encouraged. Discussion ensued regarding future meetings.
Upon motion by Director Balderas, seconded by Director Rettig, after a full discussion and the question being put to the Board, the Board voted unanimously to move to a hybrid format for District meetings.
Upon motion by Director Rettig, seconded by Director Woods, after a full discussion and the question being put to the Board, the Board voted unanimously to allow entities within the District to use the administration building for their meetings.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE BOARD, the meeting was adjourned.
* * *
The foregoing minutes were passed and approved by the Board of Directors on July 14, 2021.
President, Board of Directors
/s/ Brenda McNeil
ATTEST: /s/ Jennifer Balderas
Secretary, Board of Directors
(DISTRICT SEAL)